School District gets low rate on $325 million bond sale

Terry Webster

Friday, Sept. 28, 2001 | 9:50 a.m.

Despite concerns over the stability of the national economy, the Clark County School District sold $325 million in general obligation building bonds Thursday at an interest rate of 4.81 percent, well below what it had budgeted.

"When we started the 1998 bond program, we allowed for a 6 percent interest rate," said Linda Nehl, a bond analyst for the School District. "Hopefully this will make up for any times that the interest rate may be higher than 6 percent."

Following the Sept. 11 terrorist attacks, school officials considered canceling the sale.

"But given the circumstances, we did very well," Nehl said.

The bond program, which totals $3.8 billion through 2008, is used for construction-related projects in the district. The funds cannot be applied to other expenses.

During the 2001-2002 school year, the district will build 16 new schools, with an additional 16 new schools on tap for 2002-2003.

"The bond sale will pay not only for new schools, but also for renovation projects that are going on," Pat Herron, assistant superintendent for the facilities division, said.

Additionally, the district maintained its previous ratings with the bond rating firms that judge the ability of the issuers of bonds to repay the debt.

Some of the factors considered under the school district's rating were Clark County's strong local economy, rapid population growth and low unemployment.

Clark County is the sixth largest and fastest growing school district in the country. The district's student population is expected to grow to about 246,000 this year.